Nexa Resources (NEXA) Moves 7.0% Higher: Will This Strength Last?
Nexa Resources S.A. (NEXA) shares rallied 7% in the last trading session to close at $12.92. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 14.8% loss over the past four weeks.
NEXA is also gaining from a strong pricing environment. Over the past year, zinc climbed 35.7%, while copper surged 43.9% on expectations of stronger Chinese demand. Silver and gold rose 55.7% and 18.9%, respectively driven by falling oil prices that eased inflation concerns.
The company delivered adjusted EBITDA of $569 million in the first half of 2026, up 99% year-over-year. The increase was driven by a constructive price environment, higher sales volumes in both segments, and improving operating performance. The company’s zinc production increased 13% year-over-year despite temporary operational constraints in the first quarter.
This company is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +2833.3%. Revenues are expected to be $952.95 million, up 24.8% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Nexa Resources, the consensus EPS estimate for the quarter has been revised 6.1% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NEXA going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Nexa Resources is a member of the Zacks Mining - Miscellaneous industry. One other stock in the same industry, Globe Specialty Metals (GSM), finished the last trading session 1.4% lower at $4.26. GSM has returned 6.7% over the past month.
Globe Specialty Metals' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.03. Compared to the company's year-ago EPS, this represents a change of -50%. Globe Specialty Metals currently boasts a Zacks Rank of #2 (Buy).
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This article originally published on Zacks Investment Research (zacks.com).
